Real Estate Sector Gets a Boost in 2022 as Consumer Confidence Strengthened Post-COVID-19 Pandemic: Report

In addition to the residential sector, commercial space also attracted investors and homebuyers. The weakening value of the rupee has also persuaded non-resident Indians (NRIs) to invest in India, the report added.

Among other things, India’s first proptech unicorn in its report said that a number of young homeowners or millennials switched to becoming homeowners, previously known as the “rental generation.”

Commenting on the report, No Broker CBO and co-founder Saurabh Garg said: “2022 has been a promising year for the Indian real estate industry. We not only saw increased interest in home ownership, but also an inclination to buy larger, more luxurious homes Consumer trends in our annual real estate report also indicated that urbanized developments have once again become a desirable option for real estate investors, as they offer better price appreciation and They are free from the aging and wear and tear of property. The average time it takes to rent a property has been dramatically reduced.”

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“The inventory crisis and rent increases have been the most visible trend as people return to work cities and re-enter offices. We are of the opinion that rents will stabilize in the coming months and with construction activity in full swing, hopefully supply will match demand. 2022 has been a prosperous year in terms of demand for both the rental and purchase segments, and the momentum will continue well into 2023,” he added.

Trends in 2022:

1) Luxury loaded:

According to the report, 2022 has been one of the brightest years for the Indian real estate sector in recent times. Key trends show the luxury sector has been over-indexed as homes are priced higher $1 crore has seen a higher jump.

2) Rent inflation:

The second factor that worked for real estate was rent inflation, as rents in major cities rose more than 12 percent.

3) NRI interest:

Many NRIs have made investments in households with significantly higher ticket sizes. As responsible for most of the demand, NRI chose India as a preference, in addition to (US, UK, United Arab Emirates, Australia and Singapore).

4) Demand for land:

The growth of interest in parcels is another trend that has emerged in the last year.

5) Free brokerage:

This has to be one of the main reasons for the growth in real estate, as people are looking for houses with little to no brokerage these days. NoBroker claimed it saved $4 billion rupees in brokerage by 2022 in Bangalore, Mumbai Chennai, Pune, Delhi-NCR and Hyderabad.

6) Ease of movement:

One of the top trends among people for investing in real estate is the ease of moving, with 68% of renters surveyed saying that real estate websites now make it easy to relocate homes.

Who were the buyers?

Looking at the demographics and data, people between 25-49 years and over 50 years invested more in the purchase of housing, that is, 36 and 37 percent. Regarding profession, 53 percent of private sector employees bought a house in 2022.

Reason for buying a home:

a) Expensive rent

b) High security of owning a physical asset

c) Greater affordability to buy homes.

d) Savings due to pandemic

e) Get married.

Preferences:

According to the report, buyers from Mumbai, Pune and Delhi showed the highest interest in partnership flats, while a large proportion of buyers from Bangalore, Chennai and Hyderabad preferred to buy a detached house.

Also, compared to cities like Bengaluru, Chennai, Delhi-NCR and Hyderabad, people from Pune and Mumbai showed a lot of interest in buying suburban property, i.e. 39 and 31 percent respectively.

Key considerations:

Among buyers, key considerations include: budget, water supply, public transport connectivity, distance from workplace, apartment size, amenities, and property price appreciation.

Main buying locations for 2022:

a) Bangalore: Whitefield, Electronic City, Krishnarajapura Sarjapur Road, Hennur-Kempegowda Airport Road

b) Chennai: Madipakkam, Perambur, Ambattur, OMR, Pallikaranai

c) Delhi-NCR: Golf Course Extension, Dwarka Expressway, Sector 150 Noida, Indirapuram, Dwarka

d) Hyderabad: Kukatpally, Miyapur, Kondapur, Gachibowli, Kokapet Narsinghi

e) Mumbai: Thane West, Kharghar, Panvel, Malad West, Dombivli

f) Pune: Wakad, Hinjewadi, Hadapsar, Kharadi, Baner

The graph on the perception of people towards buying a home in metropolitan areas in 2022 shows a rebound in the real estate sector. It promises a great restart for the sector, however, how long it will last will be a matter to be seen in 2023.